CBDC News

Bank to Publish Tokenised Money Discussion Paper

Sarah Breeden, Deputy Governor for Financial Stability at the Bank of England, has spoken about a discussion paper to be issued in summer 2024 on tokenised money. It will include feedback on the paper in its work on stablecoin regulation and a possible retail CBDC. As cash transactions decline, her interest is in preserving the benefits retail central bank money makes to monetary and financial stability.

A number of central banks are experimenting with wholesale CBDCs, tokenised central bank money held on a separate distributed ledger. A key concern is ensuring uniformity of money, that the value of money issued by different banks is equal and can be converted oneforone into cash. This applies equally to settlements between banks at the central bank using the real time gross settlement system.